Rethink2015 wide

Rethinking the Horse Business

How the Economy, the Horse Industry and the Internet Are Affecting Horse Professionals

Copyright 2015 Equestrian Professional LLC all rights reserved

Tonight’s Speaker

Elisabeth McMillan

Editor and Founder of Equestrian Professional.com


Outline for Tonight

Overview of the 2015 Economic OutlookHorse Industry Highlights

Internet Insights Results from our survey of horse professionals

Summary and tips


Mainstream Global Economic Indicators

•Global Growth•Real Estate•Stock Market•Auto Sales


Global Growth Business OutlookUS: MODERATELY POSITIVEUS growth will grow at a modest 2.6 percent in 2015.Profitability may come under increased pressure as the business cycle matures and cost increases are imminent. America's strength in technological progress needs to help accelerate productivity.EURO-AREA: CAUTIOUS SHORT-TERM OPTIMISM, BUT DOWNSIDE RISKS ACCUMULATEDespite significant downside risks, the Euro Area is projected to grow at 1.6 percent in 2015, almost double that of 2014. Modest recovery in domestic consumption is a likely source of growth as labor markets improve. However, disinflation or even deflation could bring growth rates further.ASIA-PACIFIC: CHALLENGING IN CHINA; MOSTLY POSITIVE ELSEWHEREDespite softening growth rates, the Asia-Pacific region remains the leader for global growth.Growth rates of China and India are converging to 5.5 percent from 2015–2019.Despite short-term headwinds from global economy, Southeast Asia will strengthen to global production base.LATIN AMERICA: UPSIDE POTENTIALEconomic conditions in Latin America are unlikely to improve rapidly in 2015, with regional growth at only 1.8 percent.For a full overview of the business implications from The Conference Board Global Economic Outlook 2015, download the Global Overview Report which provides a discussion of results by major regions.


https://www.conference-board.org/publications/publicationdetail.cfm?publicationid=2860

Data International Monetary Fund: Graphic by Bloomberg Businessweek

Stock MarketThe U.S. stock market will advance upon its secular bull market run

with an annualized gain in the range of 5% – 9%.

Europe will continue to struggle with respect to its own economic recovery though its stock markets will see intermittent periods of

appreciation due in large part to expected stimulus measures from the European Central Bank. - Forbes


Auto Sales USA

With sales @16.5 million 2014 sales were the auto industry’s best in nearly a

decade, with almost 1 million more vehicles sold in the U.S.

last year than in 2013.


Auto Sales EU

“European Union car registrations rose 5.7% in 2014, thanks to government incentives, tax breaks and a consumer shift to cheaper brands such as Dacia and Skoda that helped the

market to return to growth after six years of declining sales.” – The Guardian


Horse Sales - PSI

YEAR # of Horses

Average Total

2011 47 271,304 EURO

12,700,000 EURO

2012 45 346,222 EURO

15,580,000 EURO

2013 48 275,041 EURO

12,752,000 EURO

2014 52 322,412 EURO

16,430,000 EURO

Performance Sales International Website


AQHA World ShowYEAR # of Horses

SoldAverage Total

2011 183 $4,690 $858,3502012 79 $8387.97 $662,6502013 70 $7,408.87 $459,350

2014 63 $7,556.35 $476,050

AQHA World Show and McCarron Equine Blog


Keeneland Sales Summary

January 2015 Sale

Head sold - 948Gross amount - $35,305,500

Average Price – $37,242Median Price – $16,000Top Price - $2,200,000


NCHA Futurity Sale Dec


A Dip Into Equestrian Association News

1. BETA – National Equestrian Survey 2014 – Protocol Horse Export to China2. BEF – This Girl Can Ride 2. AHC - Tax Benefits – PAST Act – Time to Ride3. HSUS - EU suspends Mexico4. Equine Canada – Brings High Performance Coach Model to FLA5. CHA – Reaching through generations and demographics6. NCHA – Senior Tour – Online Training along with USDF, USEA, and USHJA7. NRHA – Buy a Pro to support NRHA Junior7. College – NCAA- Equestrian 8. Equine Australia 9. USPA – Hosts Lunch and Learns10. USEF – Western DressageTREND: Staying in touch with mainstream reality, reaching out to new and

existing markets both Online and In Person


Internet Trends•72% of all internet users are now active on social media. (Jeff Bullas)

•On average, internet users around the globe have 3.6 devices. Make sure your content easy to interact with and share from any device.

•Multi-platform use is on the rise: 52% of online adults now use two or more social media sites, a significant increase from 2013, when it stood at 42% of internet users.

•For the first time, roughly half of internet-using young adults ages 18-29 (53%) use Instagram. And half of all Instagram users (49%) use the site daily.

•Facebook continues to be the most popular social media site, but its membership saw little change from 2013. However the Facebook audience remains highly active with 70% of Facebookers engaging on a daily basis.

•Video is expected to dominate social media platforms

Social networking data from Pew research


Horses on the InternetBloodHorse.com - Record Traffic and Time Spent on Site


Growth, Decline or Same


2013 vs 2014 - SURVEY

Over all growth of business. Did your horse business grow, decline or stay the same?


Year Increased Decreased Stayed the same

2013 39.6% 27.4 % 33.6%

2014 51.11% 19.44% 30.00%

Change 11% 7.96 3.6 %

2012 vs 2013 - SURVEYYear Increased Decreased Stayed the

same 2012 38.6% 26.3% 36.1%

2013 39.6% 27.4 % 33.6%

Change 1% 1.1% - 2.5 %

Over all growth of business. Did your horse business grow, decline or stay the same?


New Customers

Where are the majority of your new customers coming from?


How Has Social Media Affected Your Horse Business?


What requests for changes in services have you seen from your clients?

2010 2011

2013

Wins and Losses


Profit or Loss


How Does This Compare?


What Adjustments Made?

Opportunities

Purchased Land 16.4% 19.1% 21.43

Purchased Major Equipment

20.8% 29.1% 41.67

Purchased Horses

71% 68.1% 69.05

Refinanced Major Loans

17.1% 18.7% 9.52%

2012 2013 2014


The Most Important Trends

Wins Economy is more stable Horse Business Growth

Mainstream Reach

ChallengesRe-educating

Land/Urban BeltProfitabilityHiring Help


Solutions

• Find industry supporters and use their resources• Refine your business model

• Utilize a long term financial strategy that is unified with your career goals.

• Use a value based pricing model


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